Hi,
My wife and mother-in-law have a LLC, which is expected to issue a K-1 form (from TurboTax Business). The LLC's operating agreement states that my wife will pay for business expenses if there is a loss in the business (which happened since the business is still new).
My wife's car has been used 80% of the time for business, and we had maintenance expenses/oil change/etc expenses in 2020.
My question is about where I should report those expenses, as I am confused about doing double-dipping if I report them in the business tax return, and report that I paid them in our personal return.
1 - Report car expenses in TurboTax Business, LLC generates a K-1 and I enter the loss in the K-1 in our personal tax return, but I don't report the expenses there
2 - Similar to (1), but I report the car expenses in our personal return as we paid for that expense
3 - Do not report car expenses in TurboTax Business, LLC generates a K-1, loss is entered in our personal return, and car expenses from the business are entered in the personal taxes.
Thanks!
